Fun with trailing stops...

Open Orders

Status Symbol Action Qty Order Type Order Price Duration Order Time Session OPEN V SELL 35 TRAILING STOP 15% $54.6975 GTC 3/21/2008 4:25 PM Regular

Today's a holiday so nothing going. I've placed a trailing stop (more on them here) order for 15% on my Visa holding, since I want it to be a medium-term play and while the market settles, it could have some volatility yet. If it drops 15% or more at any point, a stop will trigger a market order to sell all 35 shares I own.

What makes it a trailing stop is that the "15%" mark is relative to the high point for the stock. As the stock's price increases, the stop "trails" or moves with it, providing a moving safety net that allows you to lock in profits. The order price is listed at $54.6975 because that represents the current 15% stop loss level. And if it triggers that, it'll suck and I'll lose some money, but if it collapses back to $50 or some such, I'd lose quite a bit more. I can always rebuy on the dip. Or, perhaps not buy on the peak in the first place. :-)

The GTC indicates that it's "Good Til Canceled" which is pretty self-explanatory. We'll revisit this order next week and see what happens with good ol' V.